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ITEM: FIRST PUBLIC HEARING FOR PROPOSED FISCAL YEAR 2014/2015 BUDGET AND ADOPTION OF THE FY 2014/2015 CAPITAL IMPROVEMENT PLAN
REQUEST:
I. Council approval of the proposed fiscal year 2014/2015 operating and capital budget including balances brought forward. This is the first public hearing on the proposed budget and the corresponding ad valorem millage rate in accordance with the Wellington Charter and FS Chapter 200.065. The second public hearing and adoption will be held on September 23, 2014.
II. Approval of the FY 2014/2015 Capital Improvement Plan and Resolution No. R2014-52 for Budget Amendment #2014-073 for completed and amended projects.
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EXPLANATION: I. FS Chapter 200.065 sets forth the procedure to be followed by each local government in adoption of the annual property tax millage, levy, and budget. In accordance with these regulations, the June 26, 2014 certified total taxable value of $6.31 billion is used in the millage and ad valorem revenue calculations for the FY 2014/2015 budget. The proposed millage rate of 2.46 mills is .04 mills below the preliminary TRIM rate of 2.50 mills adopted on July 22nd, 0.40% lower than the prior year rate of 2.47 mills and above the rollback rate of 2.2995 mills by 6.98%. The millage rate generates property tax revenues of $14,746,859 which is an increase of $1,244,652 from FY 2014 property tax revenues.
The proposed budget totals $77.05 million for all funds, an increase of $2.59 million due to higher transfers between funds. Excluding transfers, the total budget increases $25,430. The proposed budget supports existing levels of service while investing in continued infrastructure and roadway maintenance, neighborhood revitalization and public safety.
Council held budget workshops on July 7th and August 25th to discuss the proposed operating and capital budgets, and adopted the annual budgets for Solid Waste Collection and Water/Wastewater Utilities on August 12, 2014. The Acme Improvement District budget is also presented for adoption tonight.
Staff presents a balanced budget for the governmental funds, excluding Acme and balances brought forward, totaling $50,261,598, an increase of $2.49 million over the prior year mainly for $1.81 million in additional interfund transfers.
The proposed budget includes:
· General Fund reserves of 25-30% per Council policy, after allocation of $306,500 in unrestricted fund balance for FY 2015 expenditures
· Rate Stabilization reserves of $1.12 million, after allocation of $665,000 for anticipated FY 2015 legal expenses and transfers out for Roadway Maintenance. This balance assumes that the current year Rate Stabilization allocation of $600,000 for legal expenses is fully expended.
· Emergency Reserves of $2.48 million
· Use of Building Reserves of $465,000
· Funding of:
a) 297 full-time permanent positions, up 1 from amended FY 2014 positions and an increase of 5 from the adopted FY 2014 position count. Two positions are part-time conversions to full-time to accommodate the five-day municipal complex operation.
b) 3% wage increase for employees, 10% health insurance rise and 5% additional for dental insurance.
c) The required legal advertisement will be placed in local newspapers before the second budget hearing. On September 23rd, 2014 the final budget and ad valorem millage rate will be adopted.
II. The FY 2014/2015 recommended Capital Improvement Plan totals $11,173,733 for all funds, up $1.02 million from the prior year. The Plan includes:
· $3.79 million in governmental capital projects
· $3.92 million in water/wastewater capital projects
· $183,000 in capital maintenance programs
· $2.48 million in replacement tangible personal property
· $803,000 in new assets
· Reallocation of $2.8 million in existing project budget balances from FY 2014 completed or overfunded capital projects (net impact of $0) as follows:
a. Add $350,000 to the new Communication & Technology Investment Project from the deferred Infrastructure Maintenance Program
b. Reallocate $250,000 from revised Streetscape and Beautiful Wellington Grant programs to Pedestrian Paths and Roadway Overlay projects
c. Reassign $300,000 in Equine Waste & Environmental Program funding to the Surface Water Management Rehabilitation & Maintenance Program
d. Reassign $127,000 in Wellington Environmental Preserve funding to the new 2014 Acme Renewal & Replacement Program
e. Allocate $589,000 from the Equestrian Master Plan & Trails Project to the expanded Parks, Trails & Open Space project
f. Reallocate $1.19 million from the Water Supply R & R Project to the Wastewater Treatment Plan Project
Additionally, Resolution number R2014-52 for Capital Budget Amendment #2014-073 is requested to unassign $2.27 million in existing FY 2014 project budgets in the Recreation Impact, Gas Tax and Governmental Capital Funds for revised, completed or deferred capital projects as presented.
BUDGET AMENDMENT REQUIRED: YES
PUBLIC HEARING: YES QUASI-JUDICIAL: NO
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY: NO
FISCAL IMPACT:
I. At 2.46 mills, $14,746,859 in property tax revenues are generated, as adjusted for discounts. The budget appropriates a total of $50.26 million for Wellington governmental funds (excluding Acme).
II. The FY 2014/2015 budget appropriates $11.17 for Capital Outlay and reallocates $2.8 million among projects (no net budget impact). Budget Amendment #2014-073 increases Recreation Impact Fee revenues for FY 2014 by $50,100 and releases $2.27 million from assigned capital projects into capital fund balances.
WELLINGTON FUNDAMENTAL: Responsive Government
RECOMMENDATION: I. Approval to advertise the second Public Hearing on September 23rd to adopt the FY 2014/2015 budget as presented and authorize staff to make necessary accounting entries to complete reallocation of prior year operating and capital balances.
II. Approval of the proposed FY 2014/2015 Capital Improvement Plan and accompanying Resolution R2014-52 for Budget Amendment #2014-073.